Research On Controlling The Natural Rubber Of Z Company Based On Lean Thinking

The profit margins of our country’s large number of small and medium enterprisesare generally not high and the competition is fierce in the market. The logistics costsaccount for a high proportion of operating costs, and the reduction of logistics cost canbring profits growing exponentially. With the domestic labor costs and raw material costsincreasing, economic growth slowing down and other reasons, the domestic enterprises arefacing cost pressure which keeps increasing. In order to gain a competitive advantage inthe fierce competition, the small and medium enterprises need to strengthen the logisticscost control and minimize logistics costs so that they could become the cost leader in theindustry, so lean logistics cost control is very necessary.Firstly, this paper reviews the research situation of the theories about Lean Thinkingand the logistics cost, and then describes the concepts and principles of relative theories,and it proposes the concepts, processes and ways of analysis of lean logistics cost controlas theoretical basis for further research.Secondly, combining the status of natural rubber logistics cost control of Z Company,this paper analyzes not only the specific problems and reasons of process, warehousingand transportation, but also the aspects inconsistent with lean logistics cost control.Thirdly, it also analyzes Z Company’s different ways of transport and the shortestpath problem by using transport model. The warehousing costs are evaluated by usinginventory model and the choice in a number specific decisions are discussed by using AHP.On this basis, the objectives and principles of Z Company’s natural rubber logistics costcontrol are formulated.Finally, the paper proposes the logistics cost control measures based on LeanThinking, and it mainly relates to the optimization of organization and process, theoptimization of transport costs, warehousing costs and KPI etc. The study has shown thatZ Company’s logistics costs decrease significantly and the delivery time is shortened. Thecustomer satisfaction is also improved after the lean logistics cost control.